Quantitative easing explained

[peaccenicked]

http://1.bp.blogspot.com/_nSTO-vZpSgc/SUa272c5yXI/AAAAAAAAD-8/nQkDGOA9LAk/s1600-h/Bernanke-QE-Cartoon.png
Cartoon here (http://1.bp.blogspot.com/_nSTO-vZpSgc/SUa272c5yXI/AAAAAAAAD-8/nQkDGOA9LAk/s1600-h/Bernanke-QE-Cartoon.png)



More seriously, but maybe less accurately there is a radio report here (http://marketplace.publicradio.org/display/web/2008/12/15/quantitative_easing/)


This will be next years new buzz term. Forearmed is forewarned.

Merry Xmas and a happy new year !

[cyu]

Nice comic - thanks :thumbup:

[peaccenicked]

more news (http://www.telegraph.co.uk/finance/economics/interestrates/3796827/US-interest-rates-slashed-as-low-as-zero.html) on this road to hyperinflation.

[Guerrilla22]

Another brilliant idea cooked up by Ivy Leauge economist, seriously someone please shoot me.

[peaccenicked]

hey Guerrilla22.
There is no need to shot yourself there is a Peter Tosh song in my editorial ink to this bloomberg (http://inthesenewtimes.com/2008/12/18/dollars-death-decisive-moment/) article. Notice the role of quantitative easing in the dollar's collapse.:thumbup:

[Guerrilla22]

Yeah, the problem for me is 1.I live in the US 2. I live in Michigan the heart of the US auto industry and currently at almost 10% unemployment, my hometown actually is at about 22% unemployment right now. :crying:

These asshole economist sit around devising brilliant schemes that fail miserably, then through there hands up and say "whoops," when they fail while enjoying six figure salaries and their friends in the financial institutions recieve government bailouts. The rest of the actual working class are the ones who end up suffering.

[peaccenicked]

The situation is grim and the union busting propaganda from the MSM does not help.
I went through a similar period of helplessness in the 80's. The workers in the UK did not fightback till 84 and that was a year long strike with the miners and we lost. Things got even worse. I tried to set up a support group for the steelmen in Motherwell but the miners who were disappointed with previous lack of solidarity did not turn up, and that was in Scotland's major city. In fact nobody from the left turned up. I was left with the cost of the room, and I was unemployed. No big deal but what it symbolised was heart breaking. Sectarianism seems to mean if it moves try to control it. If you dont control it ignore it till it moves.
There is little one can do if those around you are too ******* up to fightback.

I started writing poems, and found some solace in the antiwar movement, not a lot.
But I found myself a woman and we had a kid. He is 20 in August.
As poverty settles in everywhere the poor need each other. In Haita whole families survive on the kindness of their neighbours.
I am not hopeful for the US economy at all but the only lesson, I have learned is that you have to fightback, right to the last man.
Organise a support group, be ready for the coming class war. Invite everyboy. Talk to everybody about the need for a non sectarian organization in Detroit.
These people for instance maybe if the have anybody (http://www.workers.org/2008/us/uaw_1225/) near by.
Anybody, anarchists to stalinists, community organisers to local newspaper editors.
We also visited every shop steward in the east end of the city, thats were I lived.
We set up a adhoc shop stewards committee, that had no left agenda beyond working class unity.
Do socials.
Learn some songs.
Here is one. http://www.peteseeger.net/talkunion.htm

Hey Guerilla22. Use the NET, talk to me, I am at this totally over spammed email address but I sort out the good from the bad. [email protected] If you want any advice during the current painful period.

[Guerrilla22]

well I appreciate the advice. I used to work in a factory making parts for Ford, but the entire factory closed a couple of years back. These days I'm server and almost have a BA in political science. I don't have much, but I'm getting by though.

[peaccenicked]

Detroit.. I should have said Michigan. But go further afield if you can. I went round the country doing benefits. BTW We even had Gary Lewis (http://findarticles.com/p/articles/mi_qn4156/is_20000917/ai_n13950831/pg_1)in our group

[peaccenicked]

Sorry I did not expect you to reply so quickly.

[fabiansocialist]

more news (http://www.telegraph.co.uk/finance/economics/interestrates/3796827/US-interest-rates-slashed-as-low-as-zero.html) on this road to hyperinflation.

For more on likely hyperinflation in the US take a look at this piece (http://www.globalresearch.ca/index.php?context=va&aid=11401) by F.W. Engdahl. It's demanding but will amply repay the effort you put into understanding it.

[peaccenicked]

fabiansocialist.

You misdirected me to a telegraph article but the article is already on our website (http://inthesenewtimes.com/2008/12/17/federal-reserve-sets-stage-for-weimar-style-hyperinflation/)

[fabiansocialist]

fabiansocialist.

You misdirected me to a telegraph article but the article is already on our website (http://inthesenewtimes.com/2008/12/17/federal-reserve-sets-stage-for-weimar-style-hyperinflation/)

As you say, though I just tried it twice right now and it worked both times.

[peaccenicked]

Well comrades!
Just a little gloating on my behalf


Quantitative easing explained

Cartoon here (http://1.bp.blogspot.com/_nSTO-vZpSgc/SUa272c5yXI/AAAAAAAAD-8/nQkDGOA9LAk/s1600-h/Bernanke-QE-Cartoon.png)



More seriously, but maybe less accurately there is a radio report here (http://marketplace.publicradio.org/display/web/2008/12/15/quantitative_easing/)


This will be next years new buzz term. Forearmed is forewarned.

Merry Xmas and a happy new year !




Dec16th 2008.


God. I hate being right:scared:

It has been predicted outside the left of course.

Who else has been talking about it.
My google search came up with my letter to the weekly worker in january
http://www.google.com/search?client=safari&rls=en-us&q=quantitative+easing+printing+money+workers+defen ce&ie=UTF-8&oe=UTF-8

No 10 at the bottom


Mike Macnair tells us: “… we are still in the ‘crisis’ phase of the cycle. The capitalist business cycle naturally follows a ‘sawtooth’ pattern: a gradual rise of economic activity, accelerating in the boom period and then slowing slightly as this period comes to an end, followed by financial and credit crisis and a rapid and disorganised fall, the phase of ‘crisis’ proper.”

The business cycle is part of the history of capitalism, yet the scale of this crisis is unprecedented. We are witnessing the unwinding of the shadow banking system that has monetised the real economy to the extent that it has been mortgaged and remortgaged in the form of derivatives and expanded well beyond the world’s gross domestic product. Derivatives have bypassed ordinary concepts of ownership, as the casino market has been de-collateralised.

Madoff’s $50 billion fraud is only the tip of the iceberg. The boom became a massive over-extended bubble built on the deregulation and criminalisation of the economy beyond the normative legalised robbery of surplus value. The central banks involved in the bail-outs are little more than clearing houses for this laundered money.

Commodity production itself will find it hard to survive the bets and counter-bets that are being made on the sinking economy. The pound will sink quicker than the dollar, yet the death dance of zombie banks is not merely a sign of depression, but the disintegration of these economies. Depression implies some degree of what the bourgeois economists call ‘correction’.

Obama’s trillion-dollar stimulus package is for infrastructure that will support ever decreasing production levels, and a deskilled population that was previously centred on the housing market. Last year we saw gold go into unprecedented backwardation, which is a sign that the warehouses are emptying, while there is a shipping crisis directly linked to the banks cutting lines of credit to the industry. The ground is being set for hyperinflation, as the money supply is entering into the arena of ‘quantitative easing’: ie, printing money.

Defensive measures ought to include joining the euro, which will become the only currency still trusted as the pound sinks. Yet this can only be part of a strategy that puts workers and community defence committees on the agenda. The point is not only to predict the depth of this crisis but to prepare for the battle against the coming super-exploitation of workers in our ‘own’ country, not only in the short but the long term. This super-exploitation will be embodied in taxation by inflation.